Global banking company BNP Paribas has leased around 500,000 sq ft of office space across four floors at One Radial, a commercial complex owned by Mindspace Business Parks REIT in Chennai. The lease has been signed for a 10-year term, according to people familiar with the transaction.

Office rentals in the area are around Rs. 90 per sq ft per month. BNP Paribas could not be reached for comment, while Mindspace Business Parks REIT did not respond to queries about the transaction.

The lease comes amid sustained demand for large office spaces from multinational companies establishing or expanding global capability centres in India. Mindspace REIT has a total leasable area of 6.3 mn sq ft in Chennai across Commerzone Porur, Commerzone Pallikaranai and One Radial. Its portfolio includes 5.1 mn sq ft of completed space and 1.2 mn sq ft under construction.

In Q1 FY27, the real estate investment trust acquired Commerzone Pallikaranai and One Radial, two institutional-grade campuses measuring 2.6 mn sq ft each. These assets complement the 1.2 mn sq ft Commerzone Porur campus and have positioned Mindspace REIT among Chennai’s two largest office asset owners, according to company disclosures.

Chennai recorded 5.9 mn sq ft of office transactions during January-September 2026, the third-highest nine-month volume since 2018, Knight Frank India said. Vacancy stood at 8.1 per cent, the lowest among India’s eight major office markets, while average rents rose 7 per cent year on year. Global capability centres leased 2.5 mn sq ft during the period, accounting for 43 per cent of transactions, while flexible workspace operators leased 1.6 mn sq ft. Grade A properties accounted for 82 per cent of transactions, reflecting limited availability of quality office space.